Under the Laws of Agency, Partners of a Public Accounting

question 86

Multiple Choice

Under the laws of agency, partners of a public accounting firm may be liable for the works of others on whom they rely. This would NOT include:

• A) specialists called upon to provide technical information to the public accounting firm.
• B) employees of the public accounting firm.
• C) employees of the client.
• D) other public accounting firms engaged to do part of the work.

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Definitions:

Specialized Expertise

Specific knowledge or skills in a particular area or field that sets an individual or group apart.

Appropriate Way

The most suitable or proper method to achieve a specific goal or to handle a situation.

Output Controls

Mechanisms put in place to measure the results of operations or performance to ensure that goals and objectives are met.

Managing by Exception

A management strategy where leaders only intervene in operations when performance metrics fall outside of pre-set acceptable ranges.